- Investment bank UBS (NYSE:UBS) raised its price target for Bank of America, indicating a potential 13% upside.
- Bank of America reported strong Q2 2026 earnings per share (EPS) growth of 34.4% to $1.22.
- This growth was fueled by record net interest income (NII) and robust trading activity, further supported by a 14% dividend increase and an endorsement from Goldman Sachs (NYSE:GS).
Bank of America (NYSE:BAC) is a global financial services company. It provides a wide range of services, including consumer banking, wealth management, and investment banking. The company competes with other major financial institutions, such as Goldman Sachs, which is the world's second-largest investment bank by revenue.
On August 3, 2026, investment bank UBS raised its price target for Bank of America to $70 from $68. With the stock trading at $61.95, this new target suggests a potential upside of about 13%. This positive outlook reflects growing confidence in the bank's financial health and future performance.
This optimism is supported by strong recent performance. Bank of America reported a 34.4% year-over-year growth in its second-quarter 2026 earnings per share (EPS), which reached $1.22. EPS measures the profit a company generates for each outstanding share of its stock, indicating strong profitability.
This growth was driven by record net interest income (NII) and robust trading activity. NII is the profit a bank earns from the difference between interest on loans and interest paid on deposits. Trading revenues also grew 33% to $7.16 billion, as highlighted by Zacks Investment Research.
The bank's confidence is also shown through a 14% dividend increase, returning more capital to its shareholders. Further reinforcing this positive sentiment, Goldman Sachs added Bank of America to its August Conviction List of top stock picks, as highlighted by 24/7 Wall Street.